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Phil Turtle
National President
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President's Column
Dear Members and Friends,
Welcome to our first newsletter for 2020, timed to follow closely behind the historic State Visit to Australia by Indonesia’s President Joko Widodo. The visit also coincided with ratification by the Indonesian Parliament of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) that AIBC has been championing for more than a decade, and which promises to herald in a new era for Australia-Indonesia relations.
President Joko Widodo is welcomed at Government House, Canberra, by Australia’s Governor General, His Excellency General the Honourable David Hurley AC DSC (Retd)
In the months over Christmas and the New Year, both countries were deeply affected by natural disasters that claimed many lives - fires across Australia and damaging flooding in Jakarta. As another demonstration of the closeness between our nations, a team of Indonesian Military (TNI) Engineers joined recovery efforts from the Australian fires, ironically also being called in to assist with flood situations that also struck parts of Australia.
On his visit, the President was joined by key Ministers including Foreign Minister Retno Marsudi, Coordinating Minister of Economic Affairs Airlangga Hartarto, Trade Minister Agus Suparmanto, and BKPM Chairman Bahlil Lahadalia. Also joining was a business delegation led by Rosan Roeslani, Chairman of the Indonesian Chamber of Commerce and Industry (KADIN), who has worked alongside AIBC and the other Members of the Indonesia-Australia Business Partnership Group (IA-BPG) for many years guiding the development of IA-CEPA. Pak Rosan also has the important role as Chair of Indonesia’s Omnibus Bill Taskforce, with the first proposed legislative changes aimed at job creation and taxation, and improved investment conditions.
During the visit I was delighted to meet with President Jokowi on several occasions, and represent AIBC at a number of events including his Address to the Joint Houses of Parliament (translated text here), Prime Minister’s Luncheon, State Luncheon hosted by the Governor General and Business Roundtable with the CEOs and top executives of some of Australia’s most prominent companies (many of which
are AIBC Members). Other AIBC Board Members and AIBC Members more generally also attended a number of these events, and contributed to the success of the President’s visit. Aside from a number of initiatives foreshadowed in various sectors, leading much of the education and business conversation was Monash University, and their commitment to establish a campus in Indonesia under the new provisions of IA-CEPA.
President Joko Widodo addresses the Indonesia-Australia Business Roundtable joined by Foreign Minister - Retno Marsudi, Trade Minister - Agus Suparmanto, Coordinating Minister for Political, Legal & Security Affairs - Mahfud MD, Coordinating Minister for Economic Affairs - Airlannga Hartarto, BKPM Chairman - Bahlil Lahadalia, KADIN Chairman - Rosan Roeslani, AIBC National President – Phil Turtle and others.
With IA-CEPA now ratified we are, in the words of Trudy Witbreuk, Australia’s Lead Negotiator through much of IA-CEPA’s development, “at the end of the beginning”, and with entry into force of the Agreement a matter of 2 months away, AIBC and the IA-BPG have an important role to play in the socialisation of the Agreement and its successful implementation.
Phil Turtle
National President
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IA-CEPA Corner
In the days before President Jokowi’s State Visit to Australia, Indonesia’s Commission VI (for Trade, Industrial, Investment, Cooperatives and Small and Medium Scale Enterprises, and State-Owned Enterprises Affairs) and the Indonesian Parliament ratified IA-CEPA, leaving only a handful of formalities prior to the automatic 60-day countdown to entry into force.
Indonesia’s Commission VI signs off on IA-CEPA
This welcome news added extra significance to the historic visit, and added a real urgency to the conversations between visiting Business Leaders and Australian delegates at various forums.
Throughout the President’s visit, much was made of a 100-day plan for the implementation of this new Agreement, with details expected soon. In the meantime, the Plan of Action for the Indonesia-Australia Comprehensive Strategic Partnership (2020-2024) gives some high level insights into the initiatives designed to ensure success under Pillar One: Enhancing our Economic and Development Partnership that sits atop IA-CEPA.
Embedded in all this are a number of activities which intersect directly with AIBC’s Mission, and we look forward to working alongside all parts of the Australian Government in delivering on the promise of IA-CEPA. This will include delivery of a range of IA-CEPA related events in all our Chapters alongside a number of our key stakeholders, including Austrade.
AIBC President Phil Turtle with Shinta Kamdani – Vice Chairman – International Relations KADIN, and Rosan Roeslani – Chairman KADIN
Useful links for those interested in further detail on IA-CEPA include the DFAT IA-CEPA website, together with earlier submissions of AIBC and the Indonesia-Australia Business Partnership Group (IA-BPG).
(* the Indonesia-Australia Business Partnership Group IA-BPG, comprises the AIBC, ACCI, Ai Group, IABC, KADIN and APINDO).
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Presidential State Visit - Highlights
One of the many highlights of President Jokowi’s State Visit was the opportunity for Indonesia’s Ambassador, Consuls General and Consuls to meet with the President.
President Jokowi flanked L-R by Pak Heru Subolo - Consul General for NSW/QLD/SA, Ibu Shinta Subolo, Ibu Spica Tutuhatunewa – Consul General for VIC/TAS, Pak Kristiarto Legowo – Ambassador, Ibu Dewi Gustina Tobing – Consul General for WA, Ibu Mira Arismunandar and Pak Dicky Soerjanatamihardja, Consul for NT.
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Indonesia-Australia Business Forum - Sydney
A number of visiting VIP delegates joined the Indonesia-Australia Business Forum, focussing on opportunities created under IA-CEPA, held at the Shangri La Hotel in Sydney on Tuesday 11 February. Welcoming remarks were provided by Pak Heru Subolo, Consul General for NSW, QLD & SA, and Trudy Witbreuk, DFAT State Director for NSW, after which keynote addresses were delivered by Pak Rosan Roeslani, Chairman of KADIN, and Pak Imam Pambagyo, Director General of International Trade Negotiations, presenting on behalf of Indonesia’s Minister of Trade H.E. Mr. Agus Suparmanto whose presentation slides can be viewed here.
Pak Imam Pambagyo, Director General of International Trade Negotiations delivering his address
These presentations were followed by lively and informative panel session featuring Pak Indra Darmawan, Director of Regional Trade Promotion (BKPM), Trudy Witbreuk, DFAT NSW State Director (and former Lead Trade Negotiator), Ibu Shinta Kamdani, Vice Chairman - International Relations (KADIN), and Pak Adhi Lukman, Chairman of the Indonesian Food & Beverage Association (GAPMMI). This session was moderated by AIBC National President Phil Turtle, with AIBC National Vice President Sam Hardjono officiating as Master of Ceremonies throughout.
Ibu Shinta Kamdani, Vice Chairman - International Relations (KADIN), speaks during the panel session
Formalities were followed by a networking luncheon and Businesses Matching Forum, where 10 Indonesian Companies promoted their goods and services and sought partnerships with relevant Australian Businesses.
AIBC thanks the Indonesian Ministry of Trade and the Indonesia Trade Promotion Centre (ITPC) in Sydney for their hosting of this event, which was organised under the leadership of ITPC Director Ibu Ayu Siti Maryam.
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Indonesia-Australia Business Partnership Group Dinner - Sydney
Coinciding with President Jokowi’s visit to Australia, and the ratification of IA-CEPA, a dinner was held in Sydney on Tue 11 February, with the Indonesia-Australia Business Partnership Group (IA-BPG) and representatives of its constituent organisations (AIBC, ACCI, Ai Group, IABC, KADIN and APINDO).
Kindly hosted by PwC and Serco Asia Pacific, this dinner was officiated over by AIBC National President Phil Turtle, and featured an address by KADIN Chairman, Pak Rosan Roeslani, and a panel discussion moderated by Bryan Clark, Director International Trade – ACCI. The panel comprised of Ibu Shinta Kamdani, Vice Chairman – International Relations (KADIN), Pak Dino Vega (KADIN) and Pak George Marantika (KADIN/IABC).
Pak Rosan Roeslani, Chairman KADIN, delivering his address
Bryan Clark and panellists discussing IA-CEPA
Our hosts were joined by a number of invited Business and Government VIPs, who participated in an informative and thought provoking Q&A session with panellists.
AIBC thanks PwC (Andrew Parker) and Serco Asia Pacific (Garry Brown) for their kind hosting of this event.
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AIBC Conference 2020
The Conference theme is to be “Looking North : Shifting Up a Gear” reflecting that the southern high-population centres of Australia look north to Darwin (and beyond), Darwin looks north to its very near neighbours in Indonesia, and Indonesia looks north to its ASEAN and North Asian neighbours.
The Conference website, which can be viewed here, already contains some details and other materials that will be updated regularly as further information becomes available. We would particularly like to hear early from any groups keen to be involved and support the Conference as a Sponsor Partner. Please contact AIBC President, Phil Turtle, directly here with any enquiries.
For those on Twitter, please feel free to make use of the #aibc20 hashtag that we will be employing along the way and throughout the Conference.
We thank the Northern Territory Chief Minister, Hon Michael Gunner, and the Northern Territory Government, for their early support in what will be a very special Conference that is not to be missed.
Phil Turtle
National President
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AIYA Annual 2019
The AIBC is proud to continue its relationship with the Australia Indonesia Youth Association (AIYA) around the country, in all our State and Territory Chapters.
To find out more about AIYA, and what they delivered and achieved over the past 12 months, see their AIYA Annual 2019 here.
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Advance Awards 2020
ABOUT ADVANCE AWARDS
Established in 2012, the Advance Awards celebrate international Australians and alumni who exhibit remarkable talent, exceptional vision, and ambition.
The Advance Awards are the only Awards to recognise and celebrate the work of global Australians and alumni of Australian universities around the world who exhibit remarkable talent, exceptional vision and ambition at any stage of their career.
Advance Awards are on a mission to find global Australians achieving extraordinary things - and need your help.
If you know a global Australian who has made a significant impact in their field internationally - submit a nomination today.
Award Categories
Category Awards are presented to the most exceptional entrant in each sector. The sectors include: advanced manufacturing, commercial creatives, education, financial services, food and agriculture, healthcare and life sciences, energy and resources, social impact, sport, sustainability, science and technology and the arts.
To read more about the Advance Awards Program, please click here.
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ACT Update
AIBC ACT Chapter and SA Chapter Chair met with Ibu Farah Ratnadewi Indriani, Deputy Chairman for Investment Promotion, BKPM and Henry Rombe IIPC Sydney on to discuss specific investment opportunities available to Australian businesses under the IA-CEPA.
Key areas of focus for BKPM identified under the 100 days of progress goals as areas for primary focus included;
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Business dialogue
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Simplification of business and student visas;
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Educational engagement including Monash University,
Six KPI’s were identified;
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Execute investment realisation - licensing;
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EODB improvement of rank from 73 up to 50;
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Promotion – targeted;
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SME engagement enhancement;
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Seeking investment growth of 15% (an 88g trillion Rp investment) -Australian investment dropped from 10th to 12th last year;
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Infrastructure and toll roads focus.
The largest five sectors of FDI in Indonesia continue to be:
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Mining;
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Steel Industry;
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Cattle/Plantations;
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Hotels/Restaurants;
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Other services.
The discussion was insightful and productive.
Prerana Mehta
ACT Chair
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QLD Update
IA-CEPA Information Evening
The ratification of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) will see an even closer relationship with our nearest neighbour. The Australia Indonesia Business Council are hosting an information evening with guest speaker, the Hon. Mark Furner MP – the Queensland Minister for Agricultural Industry Development and Fisheries, and industry experts on the opportunities for Queensland companies.
If you’re an investor, exporter or just evaluating the opportunity the IA-CEPA will offer your business, this is a must-attend event.As one of the fastest growing economies in the Indo-Pacific, Indonesia presents a significant opportunity for Australian businesses and is estimated to be the world's fifth-largest economy by 2030.
You will hear from a range of expert presenters on:
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Business benefits and opportunities;
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Understand the Rules of Origin and the Certificates of Origin requirements;
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Learn how to compare which FTA will be more beneficial for your product;
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Hear from case study exporters and specialist panellists on how to do business with Indonesia (what to do and what not to do)
There is considerable opportunity for Queensland to expand its trade, investment and economic cooperation with Indonesia, so don’t miss this opportunity to unlock the door to one of our most important markets.
For further details and registration, please click here.
AIBC QLD - Meet the Committee
The AIBC Queensland chapter started off the year with a free after work drinks catch up at Bar Pacino, in Brisbane on 20th February.
Around 30 Committee, business and community members joined in giving a casual welcome to what will be a big year for the Australian Indonesian relationship.
Adjunct Professor and AIBC Life member, Colin Brown enjoying networking with guests.
Professor Colin Brown gave an enlightening opening address, followed by attendees participating in a vibrant, but low key, networking experience.
It was a chance to build bonds, and share experiences and expertise over a few cool drinks, as the sun went down over the beautiful Brisbane River.
AIBC QLD looks forward to hosting more of these casual networking events as the year progresses.
Guests enjoying the networking overlooking the Brisbane River
Paul Martins
QLD Chair
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SA Update
IA-CEPA: Cross Benefits for Trade and Investment Opportunities in SA
Mr Heru Subolo, the Consul General of Indonesia for SA, NSW, and Queensland, together with the Economic Consul, Mrs Trisari Paramita visited Adelaide on Friday, 21 February 2020 to spread the words on IA-CEPA in SA, accompanied by Amalia Sosrodiredjo, AIBC SA Chair.
The Consul General had a fruitful meeting with the CEO of Regional Development Australia (RDA) for the Barossa Region to explore potential cross benefits on trade and investment under the IA-CEPA scheme between Indonesia in general and/or West Java, in particular, as Sister State to South Australia, with Barossa and surroundings.
(L-R) Amalia Sosrodiredjo, AIBC SA Chair, Anne Moroney, CEO RDA Barossa and Heru Subolo, Consul General RI for SA, NSW, Queensland
Furthermore, we had another productive meeting with Director of New Venture Institute, Flinders University, Aron Hausler, and Lecturer Innovation and Enterprise of Flinders University, Carla Dias Wadewitz. We discussed about how the New Venture Institute had successfully facilitated 51 start-up ecosystems from Indonesia who won the 2018 and 2019 batch of the Australia Awards for Indonesia on “Start-Up Ecosystems” short courses in Adelaide, Melbourne, and Sydney.
In addition, NVI is one of the SA innovation ecosystem service providers to help Immigration SA to assess business ideas for international entrepreneurs to bring their innovative ideas to SA under the new SISA visa (subclass 408). Both the Start-up Ecosystems short course program and the SISA visa are absolutely great opportunities for Indonesian entrepreneurs to apply for and connect with International entrepreneurs in SA!
(L-R) Lecturer Innovation and Enterprise of Flinders University, Carla Dias Wadewitz, Consul General RI for SA, NSW, Queensland, Heru Subolo,, Director of New Venture Institute, Flinders University, Aron Hausler, Economic Consul RI for SA, NSW, Queensland, Trisari Paramita and AIBC SA Chair, Amalia Sosrodiredjo.
Amalia Sosrodiredjo
AIBC SA Chair
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TAS Update
Hobart Welcomes the Indonesian Minister of Marine Affairs and Fisheries
AIBC was pleased to help facilitate the visit of the Indonesian Minister of Marine Affairs and Fisheries - Edhy Prabowo and a large delegation from his Ministry to Hobart last week. The visit was to review and develop ongoing working relationships with the University of Tasmania (UTAS), Tasmanian State Government and Tasmanian business focused primarily on seafood and fisheries.
Minister Edhy Prabowo holds a tropical lobster at IMAS lobster breeding centre in Hobart
The Minister spent the first day at the Institute of Marine and Antartic Studies (IMAS) to review its world class lobster breeding and aquaculture technology, and learn from the Tasmanian industry experiences on how to develop and partner in Indonesia's future seafood industry development.
L-R. Agnes Marcellina - Deputy Chair / Stakeholder and Public Consultation Commission (MAF), Spica A Tutuhatunewa - Indonesian Consul General VIC & TAS, Prof. Effendi Gozali - Chair / Stakeholder and Public Consultation Commission (MAF), Prof. Rokhmin Dahuri - Minister Advisor (MAF), Slamet Soebjakto - Director General Aquaculture (MAF), Sjarief Widjaja - Director General Human Resource, Education and Research (MAF), Safri Burhanuddin - Deputy / Coordinating Ministry of Maritime Affairs and Investment, Iis Prabowo - Member of Indonesian Parliament, Edhy Prabowo - Minister of Marine Affairs and Fisheries (MAF), Jeremy Rockliff - Deputy Premier Tasmania, Rufus Black - Vice Chancellor UTAS, Nilanto Perbowo - Director General (MAF) and Kim Evans - Head / Department of State Growth Tasmania.
Minister Edhy Prabowo and Deputy Premier Jeremy Rockliff exchange gifts
In the evening, Deputy Premier Jeremy Rockliff and UTAS Vice Chancellor Rufus Black co-hosted a dinner event that included the signing of an MOU between the Ministery and University for future collaboration, in addition to healthy portions of Tasmanian salmon.
Peter Craven
TAS Chair
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VIC Update
Meeting with His Excellency, Ridwan Kamil, Governor of West Java
On 25 February, AIBC Victoria hosted a meeting with the Governor of West Java, Ridwan Kamil, and the delegation travelling with him, including the Chairman of the West Java Chamber of Commerce and Industry (KADIN), Tatan Pria Sudjana. The Governor outlined his 5 priorities, including for investment: infrastructure, sustainability, inclusive economy, digital economy and tourism. During the meeting an MOU was signed between AIBC Victoria and KADIN West Java to drive closer collaboration.
AIBC Victoria also attended a boardroom lunch hosted by the Victorian Parliamentary Secretary to the Premier, Danny Pearson, for the Governor and his delegation and valuable connections were made with representatives from two TAFES, two water companies, an IT business and a global service business, each of which are already exploring Indonesia as a market or investment destination and hence are potential AIBC members.
We attach a copy of the MOU signed between AIBC Victoria and KADIN West Java.
If any AIBC members, especially those based in Victoria, would like to explore opportunities with West Java, including potentially through further roundtable discussions, feel free to reach out to the AIBC Victoria Chair, Jared Heath, on VICchair@aibc.com.au.
Jared Heath (AIBC VIC Chair) with Pak Ridwan Kamil, Ibu Spica, and the BKPM Delegation led by Pak H. Tatan Pria Sudjana, AIBC members, together with the AIBC VIC Committee.
Jared Heath
VIC Chair
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Indoview
Indonesian Investment Promotion Centre (IIPC) Newsletter
This year the Indonesia Investment Promotion Centre (IIPC) has launched a newsletter to share recent updates on Indonesia's investment climate and what's happening at IIPC Sydney.
Read the February edition here, and the inaugural January edition here.
BKPM - Increased Business Licensing Responsibilities
In his recent article, Bill Sullivan of Christian Teo & Partners, looks at changes to business licensing responsibilities of the BKPM.
"The Government has increased the responsibilities of BKPM, with regard to business licensing, as part of an ongoing reconsideration of what is required to facilitate the doing of business in Indonesia and encourage more investment.
Only time will tell what difference, if any, increasing the responsibilities of BKPM makes in terms of facilitating the doing of business in Indonesia and attracting more investment. There must be a concern, however, that the Government is overly focused on ‘optics’ rather than on substantive reform.”
To read this article in full, click here.
Issues for Foreign-Owned Construction Companies
In another recent article, Bill Sullivan of Christian Teo & Partners, looks at developments affecting foreign-owned construction companies.
"Intensive lobbying efforts, by various foreign chambers of commerce, resulted in the late 2019 revocation of a Ministry of Public Works regulation that was regarded as having the potential to cause serious problems for foreign-owned construction companies.
Unfortunately, however, the Ministry of Public Works subsequently issued a circular letter that, as currently interpreted and applied, seems to mean most of the previously identified problems have actually not gone away at all.”
To read this article in full, click here.
Indonesia Market Update
In their January 2020 edition of “Indonesia Market Update”, Morelink Asia Pacific provide news updates across many key sectors including the Indonesian economy, investment, trade, retail, agrifood, manufacturing, automotive, ICT and infrastructure sectors.
To read this update, click here.
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